Dermody Properties Closes 3rd Industrial Fund at $1.1B

14490 Catalina St. in San Leandro, Calif. The property was recently acquired through DPIF III.

Dermody Properties has closed its third commingled fund, Dermody Properties Industrial Fund III L.P. The Reno, Nev.-based company was able to raise $1.1 billion from public and corporate pension funds, insurance companies and other institutional investors.

DPIF III will align with the company’s strategy of investing in Class A, logistics facilities across major markets. Investments will be directed toward single properties and portfolio acquisitions, as well as development opportunities.

Dermody’s DPIF III was oversubscribed, exceeding its $800 million target. The company filed its Form D with the SEC for the fund in June 2020. The previous iteration, DPIF II, also exceeded its target, closing at $619.2 million in August 2018.

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Dermody Properties Chairman & CEO Michael Dermody stated that investing in modern logistics facilities led to the creation of a nationally diversified portfolio with DPIF I and II. Since its founding in 1960, Dermody Properties has invested more than $6.2 billion across all platforms.

According to CommercialEdge, Dermody owns more than 18.7 million square feet of industrial assets, some of which are currently under construction.

Expansion strategy

Recently, the company has expanded its Western portfolio. Last month, Dermody acquired an infill property at 14490 Catalina St. in San Leandro, Calif. According to CommercialEdge, the 90,727-square-foot asset traded for $16.7 million and was purchased through DPIF III. In addition to the Bay Area, last year Dermody also acquired properties in the Inland Empire and Las Vegas markets, adding roughly 800,000 square feet to its portfolio in the Western region.

Dermody has recently entered the Philadelphia market as well, where it is developing one of the largest industrial projects currently underway, LogistiCenter at I-95 Wilmington—a 3.8 million-square-foot, five-story facility that is fully leased to Amazon, according to CommercialEdge. Across the Delaware River, Dermody is also constructing the 1.2 million-square-foot LogistiCenter at Woolwich, situated in Gloucester County.